But calls have gone out from Arbejderbevægelsens Erhvervsråd1 saying that this is A Very Bad Idea, because the problem is not with competitiveness, it is with a lack of demand, which is not solved by wage cuts - quite the contrary, they make things worse. (Translation into ET-speak: This is a demand-side crisis, and trying to solve it with supply-side policies is - at best - a beggar-thy-neighbour strategy.)
- Jake
1) AE-rådet are the serious people employed by the labour unions to try to spread a little sanity in public debate. If you only spend 20 minutes of the rest of your life on economics, go spend them here.
this is A Very Bad Idea, because the problem is not with competitiveness, it is with a lack of demand, which is not solved by wage cuts - quite the contrary, they make things worse
Skilled labour is another story.
Still, it's nothing that higher unemployment subsidies cannot solve.
- Jake If you only spend 20 minutes of the rest of your life on economics, go spend them here.
Wages per hour will not be reduced by this plan. Peak oil is not an energy crisis. It is a liquid fuel crisis.
